Nikkei edges down, N.Korea tensions deter investors

Reuters Staff

2 Min Read

* Yamato rises on report it will raise shipping rates

* Cos running online shopping businesses fall

By Ayai Tomisawa

TOKYO, March 7 (Reuters) - Japan's Nikkei share average edged down on Tuesday morning, following Wall Street's lead, with investors deterred by geopolitical tensions after the North Korean missile tests, though the dollar-yen stayed in a well-worn range.

The Nikkei fell 0.1 percent to 19,353.06 in midmorning trade.

The dollar held onto gains made on expectations that the U.S. Federal Reserve will raise interest rates next week.

The dollar edged up 0.1 percent against the yen to 113.94 yen after falling to a one-week low of 113.53 yen on Monday as tensions over North Korea's missile tests prompted investors to buy the perceived safe-haven yen.

Although overall trading volume in the stock market was thin, investors focused on individual company news, said Takuya Takahashi, a strategist at Daiwa Securities.

"Since there will be an eventful week ahead, most investors are on the sidelines," Takahashi said.

Yamato Holdings jumped as much as 4.1 percent after the Nikkei business daily reported that the company, which controls about half of the domestic home delivery market, plans to raise its shipping rates across the board for the first time in 27 years, citing the president's comment.

Companies running online shopping sites such as Rakuten Inc and Yahoo Japan tumbled, falling 1.9 percent and 1.3 percent, respectively, on worries that Yamato's move would add to their costs.